The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1887-03-17
THE GREAT B. & o. SALE.
The Real Key to the Transaction.

,he baltimore and Ohio Railroad will be sold
20 Alfred Sully If he can raise the money to
purchase it. If he cannot it will pass into the
hands of others who are now ready to under
AXE negotiations. In either event Robert
Garrett will no longer be identified with Its &C.
i've management This is absolute, positive
and authoritative. AS matters stand Tonight,
md this can be stated on Information from I'M
questionable sources, MI. sully is master of the
and until he confesses that he is un-
able to bring together the financial and othe L
interests that must be reconciled to assure the
suscess of his undertaking no one can step in
and buy the road over his heal. Mr.. Garrett,
despite the fact that Mr.. Sully's original option
has expired, intends to continue waiting for
Mr. Sully a few days longer.
There is great deal more strength in the
position which this gentleman occupies in the
pending deal than he has been given credit for,
To be sure, he cannot get along without the aid
of Mr.. Gould, Mr.. Corbin and President Rob-
erts of the Observation-Disclosures which he
first thought could be readily allied but on the
other hand the important fact remains that
these three gentlemen are equally at sea with
out Mr.. Sully's cooperation, for 1t may as we'll
be understood at the outset that Mr.. Garrett is
going to choose his >,wn purchaser of the great
road that was left to his care as the idolgof his
family and the pride of his native state. Mr.
Garre tt went to Mr.. Sully, not Mr.. Sully to
him. and until that gentleman gets ready to
drop out of the negotiations Mr.. Garrett will
remain wholly passive in the matter.
INSIDE FACTS ABOUT THE DEAL.
There has been great deal printed about
these negotiations. Some of it is true, most OF
it is not. The one broad, significant and, to
Marylanders, astonishing fact that has been
brought out, is that Mr.. Garrett is to step aside
frora the presidency of the Baltimore and Ohio
and permit others to dictate and shape its des-
TIMES. Why All Wall Street and most of the
printed reports assert that 1t Is because Mr.,
Garrett has greater love for the graces of the
banqueting table and the delights of social life
than he has for the close routine Of daily work
which his father followed and prospered. Mr..
Garrett may have been unconsciously swerved
by these considerations, but they are wholly
foreign to the all-important one which led him
to take the step on which he has decided.
WHY MR.. GARRETT RETIREs,
can state on authority that mast go unques-
toned that he retires wholly because he can
not get the Baltimore and Ohio into New York
City in any other way. Any other reason OF
motive that may. be assigned him is second
airy to this.
IA 1ltUlC Hlcooiy may ~ AoA W 1d6AhO C1Col
the peculiar nosition in which Mr.. Garrett thus
found himself forced to give to others the task
sumed the presidency of the baltimore and
Ohio he did so with this fixed purpose III his
mind, to get an entrance into the metropolis
1t was the ambition of his life. After turning
the problem in his mind for two or three
years be built the new line from this city to
Philadelphia. Those who know say that this
project cost sl7 100000. Then he got Mr.. Gowen
to sign an agreement by which his trains would
be run over to the Reading and Jersey Central
tracks to New York City. Despite the asser-
tons to the contrary that have been made Mr.,
Garrett honestly and confidently expected this
arraL cement to be carried out. But the power
of the Pennsylvania corporation cruQhed his
H Hea woph @ ag s wF ina
Not a passenger or q ton of freight has ever
been taken direct to New York by the Balti-
more and Ohio over the Reading tracks. There
never Will be as matters stand now.
THE TASK ABANDoNEDr
: Two months ago Mr. Garrett first realized
that be could get his cars to New York only by
one of two ways: By making sn arrangement
with the Pennsylvania or by building an en-
tirely new ltpe Of road across Jersey. The first
of these alternatives he did lot want to accept,
that he made up his mind to leave to other
heads the solution of the problem of an open
pathway from Philadelphia to the metropolis.
bigger combats than his father eyer dealt with
and his struggles had made dangerous inroads
on bis hsasih Gn I'VE or three occasions he
connection with the road and delegate its
management to his subordihates. When he
considered the giant task before of overcoming
the obstacle in his road to New York he aaFas to
the conclusion that he could net undertake 1t
unless at the peril of his health, and he did not
1t was in this frame OF mind that Mr.. Garrett
asked Mr.. Sully to make him a proposition for
the purchase of the Baltimore and Ohio. Ee-
fore doing SO, however, he had secured control
of working majority Of the voting stock The
sources from wifiah this has come have new r
AS every one kcows the elder Garrett capital
lied the road on singular plan. Of the $780,.
900 co.. y Sao IN sns oapta stock OF
per cent Interest, but does not vote. The city
Of Baltimore and the state OF Maryland own to-
gether about s4.0O0,0O0, which is also deprived
OF any Voice in the annual elections, but is rep
resented in the directory of the road. Thus
only about sll. 900 900 of the capital stock has
to soid s Mf saEgs Varies 70 tse
only 3 SnaS he Gregg and Errns
estates gave up their entire block, amounting
81 as f6e 5as as
made up from two dozen small blocks held by
residents of baltimore,
THE PRICE OF THE STOCK.
Mr.. CARROTS proposition was that this
$S50O000 was to be taken at 200 as the top price.
1t is understood that no has siaae reduced that
figure to 100, for that is the price which is now
agreed npon fof, the transfer. The conditions
are 81 100000 cash and the remainder in stated
payments to extend over two years-satd pay
ments to be made in cash or its equivalent.
and every dollar to be guaranteed by RESPONSE
Bile parties at the outset.
IN order to insure the preservation of the in
dividuality of the Baltimore and Ohio after it
is swallowed up in the vast system oontempla-
ted, MI Garrett has provided that the So, 900 900
Of stock left in trust by his father shall be SO
held by the syndicate, who are to guaranty an
Garrett family. In other words. this block of
stock will practically belong to the syndicate
Mr.. Garrett to place in the directory, and on
his death or resignation he will haye the privi-
lege of naming his successor. In this way the
Influence Of the present administration cannot
be dwarfed by the new deal, nor the Identity of
the Baltimore be lost or impaired.
The statement that such a high price as 100
was fixed because part payments were to be
made in Richmond Terminal stock are untrue.
1t is to be no exchange of stock or securities of
basis. Mr.. Gs rrstt eioea not consider the figure
at all above the actual value of the stock. On
the contrary he has given orders TO his brokers
to purchase all that Is offered in the open mar
ket under that figure, and he has added consid-
erably to his holdings by purchases in the last
few days.
BLOCKED BY THE PENNSYLVANIA
In the meantime Mr. Sully has been vainly
trying tu get together the syndicate that
he first thought so easy to organize. Up to last
night he had failed signally, but not because
his associates in the Richmond Terminal de-
clined to go into the scheme, though this has
generally been understood to be the reason
the carrying out Of his plans They We're Jay
Gould and Austin Corbin-the first to advance
the 81 O)O,QO0 ready cash that was necessary and
the other to make the entrance into New York
certainty. MI. GOULD declined because he
wanted bigger slice of the cake than was Of
fered him. and Mr.. Corhin because he saw that
no arrangement could be made without the
Pennsylvania. Thus Goulda and the Pennsylva-
mia hold together the keys to the whole situa-
ton. Mr.. Su1lys one hope lies In their willing
ness to come into the arrangement, and this
they are strong enough to decline to do, except
on their own terms.
Though matters looked blue enough for Mr.
Sully last night among those who knew the
situation, they have frightened up great deal
city at O'Clock tonight from a New Yorker
equally prominent there in politics ard in IL
nance states that u. G."--meaning of course
Jay Gonld--,".ta inks an arrangement with both
the Baltimore and Ohio can reach New York
could be made.
Jay GoULD's POSITION,
Mr.. Gould's positiGn in the matter Ia that he
will not go into 1t unless the Pennsylvania in
terests are harmonized, and should they be SO
ton. The size of his interest Is now to be set
tied, and, as is evident from the dispatch have
just quoted. It'll in q fair way to be amtcably
adjusted. Mr., Gould's connection with the
Pennsylvania is known to be close, and it Is
thought that he and President Roberts have
already come to an understanding.
One of the few men who know every move
that Mr.. Garrett has nade was asked Tonight
whether there had been 9 conference yesterday
in Washington between Messrs. Garrett, Sully
Corbin and others. He said;
ri can positively say no. Mr.. Garrett recog-
nizes no one in these negotiations but MIR.
SulIy. The latter has several days yet in
which to accept the proposition. Mr.. Garrett is
letting Sully fight his own battle.'
sis the two years limit for payment fixed
'sNot entirely so. There may be a change in